(1)There
is hereby established a Banking Board which shall be composed of three
members
appointed by the President and with the advice and consent of the
Congress of
the Federated States of Micronesia.

(2)All
appointments shall be for a term of four years, provided however,
that, unless
otherwise provided by the President, all rights and powers of a
Banking Board
member shall be maintained by each member until the appointment of
such
member's successor. Banking
Board
members shall be eligible for reappointment.

(3)The
Chairman of the Banking Board shall be appointed by the President from
among
the members appointed pursuant to subsection (1) of this section.

Source:PL 9-130 § 2; PL 13-56 § 3.

Cross-reference:The
statutory
provisions on the President and the Executive are found in title 2 of
this
code.The statutory
provisions on the
FSM Congress are found in title 3 of this code.

The official website of the Congress of the
Federated States
of Micronesia contains the public laws enacted by the Congress,
sessions,
committee hearings, rules, and other Congressional information at http://www.fsmcongress.fm/.

§
202.Principal
purposes.

The principal purposes of the
Banking Board shall be:

(1)To
undertake the licensing and supervision of banks;

(2)To
protect the interests of depositors; and

(3)To
promote the soundness, stability, and development of the banking
system of the
Federated States of Micronesia.

Source:PL 9-130 § 3.

§
203.Powers.

The Banking Board shall be
responsible for its policy and affairs, shall have the powers
conferred upon it
by this subtitle and may issue directives for the purpose of giving
effect to
the provisions of this Act.

Source:PL 9-130 § 4.

§
204.Meetings;
Quorum; Majority.

(1)The Banking Board shall meet as often as
may be required, at such times, places and with such prior notice as
the
members thereof shall fix, but not less frequently than once in every
three
months; provided that any member thereof may request a special meeting
upon
giving at least 24 hours’ notice to the Chairman.A majority of the members of the Banking
Board shall constitute a quorum.Decisions shall be adopted by a simple majority of the votes of
the
members present.

(2)No
act or proceeding of the Banking Board shall be invalidated merely by
reason of
the existence of a vacancy among the members thereof.

Source:PL 9-130 § 5.

§
205.Reports.

(1)The
Banking Board shall prepare a report each year on the condition of the
banking
system of the Federated States of Micronesia and on the operations of
the Board
during the year. Copies
of the report
shall be submitted to the President and the Speaker of the Congress
within
three months of the end of each year. The
report shall also be published.

(2)The
Banking Board shall also make up and publish a consolidated statement
of assets
and liabilities of the Federated States of Micronesia banking system
not less
frequently than quarterly, and send copies of the statement to the
President
and the Speaker of the Congress. The
Banking
Board may also publish from time to time a consolidated statement of
assets and liabilities of the Federated States of Micronesia banking
system
showing figures separately by state.

Source:PL 9-130 § 6; PL 12-57 § 3.

Cross-reference:The
statutory
provisions on the President and the Executive are found in title 2 of
this
code.The statutory
provisions on the
FSM Congress are found in title 3 of this code.

§
206.Banking
Commissioner.

(1)The
President shall appoint a person to be Banking Commissioner, who shall
serve as
the Chief Executive Officer of the Banking Board, responsible to it
for the
execution of its policy and the performance of duties and exercise of
powers
conferred by this subtitle.

(2)The
Banking Commissioner shall be a person of recognized experience in
banking and
financial matters and shall be eligible for reappointment.The Banking Commissioner shall not hold or
occupy any other office unless approved in writing by the President.

(3)The
remuneration and other terms and conditions of employment of the
Banking
Commissioner shall be determined from time to time by the Banking
Board.

(4)The
Banking Commissioner shall, except as may otherwise be provided in
this
subtitle or the resolutions of the Banking Board, have the power to
act and
sign instruments and documents on behalf of the Banking Board.

(5)The
Banking Commissioner shall serve, ex
officio, as a non-voting member of the Banking Board.

(6)During
any period when there is no duly appointed person serving as Banking
Commissioner, the Chairman of the Banking Board shall perform the
duties and
exercise the rights of the Banking Commissioner.

Source:PL 9-130 § 7.

§
207.Services of
Public Auditor and
others.

The Banking Board and the Banking
Commissioner shall be entitled to utilize the services of the Public
Auditor
and such independent accountants, lawyers, and other experts as they
may select
in carrying out their powers and duties under this subtitle. The
President of the Federated States of
Micronesia shall provide such administrative support and staff as may
be needed
to conduct the business of the Banking Board.

Source:PL 1-94 § 204; PL 2-20 § 3;
PL 9-130 § 8.

Cross-reference:The
statutory
provisions on the President and the Executive are found in title 2 of
this
code.Chapter 5 of title
55 of this code
is on the Public Auditor.

§
208.Court review.

Any person aggrieved by an order of
the Banking Board may appeal to the Trial Division of the Supreme
Court of the
Federated States of Micronesia within 30 days after the issuance of
the
order.The filing of such
appeal shall
not stay enforcement of an order but the Court may order a stay upon
such terms
as it deems proper.

Source:PL 1-94 § 205; PL 6-73 § 1;
renumbered by PL
9-130 § 9.

Cross-reference:The statutory provisions
on the FSM Supreme
Court and the Judiciary are found in title 4 of this code.The statutory provisions on Judicial
Procedure are found in title 6 of this code.

The FSM Supreme Court website contains court
decisions,
rules, calendars, and other information of the court, the
Constitution, the
code of the Federated States of Micronesia, and other legal resource
information at http://www.fsmsupremecourt.org/.

§
209.Indemnity.

Neither the Banking Board nor any of
its members, the Banking Commissioner, employee or any person duly
appointed to
assist the Banking Board in carrying out its powers and duties under
this
subtitle shall incur any liability as a result of anything done in
good faith
in the exercise of any power or the performance of any duty under this
subtitle.